I'm curious about the tax law for coin purchases. I thought it was a tax free commodity. In other words, when you buy a $10 coin, you pay $10 and not $10 plus 6.75% tax. I have seen people charege tax on coins but yet most don't. Whats up with that?? Maybe some of you out there have paid tax. Let me know if you ever have.
Depends on the state. In FL we have no taxes on coin purchases. Thank God! If you want to discuss tax policy, take it to the General Discussion forum. The edited part of your post had no direct relationsip to coins. Yes it did...get real!
In the U.S. sales tax law is purely a state issue, and in some states it even varies from county to county. In other countries it is sometimes a question of national law, sometimes a question of state/provincial law, and (like Canada) sometimes a mix of both. With 50 states, a dozen or so Canadian provinces/territories, and hundreds of other countries, no one can give you a definitive answer that's always true. Most foreign internet sellers don't charge U.S. buyers sales (aka "VAT" aka "GST" aka ???) tax on coin purchases, nor do most U.S. sellers. However a business with a location in the same state as the buyer is very likely to apply that state"s law, whether it exempts coin sales in full, selectively exempts them based on dollar value, or imposes full tax on them. That's because the Supreme Court has upheld the right of a State to tax any business with a location in the state, or with certain other ties to the state. For more details, go sign up at your local law school to take a course in taxation, which will devote a substantial period of time to sales tax issues.
And if you live in a state that does apply sales tax to coins and buy coins by mail from another state to avoid the sales tax, you will most likely owe to your state what is usually called a Use tax. But since unlike sales tax there is no one collecting the tax at the time of the sale most people don't bother to send it in. Many states are examining ways of enforsing the collecting of the Use tax.
No sales tax on out of state orders, but there is shipping cost. Unless you have to drive a long ways to the coin shop, or have a large mailorder shipment, a little sales tax may be cheeper.
That will probably require some sort of Federal involvement, as most interstate purchases are done by internet or phone (both over phone lines) or by mail (USPS). All of which are done by Federal agencies. In addition, there's the famous (or infamous, depending on your perspective) "interstate commerce clause."
Not true! If the dealers are collecting a sales tax it is because the State of Indiana (and/or the City or County where the show is held) has a sales tax. There is no federal sales tax in any state; and sales taxes, if any, in D.C., Puerto Rico, Guam, etc., are imposed by the locals, not the feds.
